Li Ninggui Has A Reason To Rise 12 Times In Three Years.

When it comes to Olympic concept stocks, we must not mention Lining (2331), because his founder Lining is the Olympic gymnast gold medal winner, and also a few retired athletes who are in business and can achieve some success.

Lining has made full use of his popularity and achievements in sports. Apart from his own efforts, he has hired many professionals to run the company's managerial positions. Therefore, in just more than 10 years, he has become a famous sporting goods manufacturer in the mainland.

Lining came to Hong Kong in June 2004, when the offer price was 2.15 yuan. After the listing, the share price has been improving. Basically, it can be used without falling down.

Before the fall of the market in November, it hit a record high of 32 yuan, 13.8 times higher than the stock price.

Don't forget that Lining's listing is only 3 and a half years, even if the market price of 27.9 yuan on Friday (21) has increased nearly 12 times. It must be one of the best performing companies in recent years.

Lining himself is a leading sports brand in the mainland. He mainly sells sports and leisure sports shoes, clothing and accessories, and sells mainly to the mainland.

In the first half of the year, there were 4358 stores and retail networks. In addition, since 2005, Lining and AIGLE have formed a joint venture to jointly develop outdoor leisure wear and footwear for 50 years, thus expanding the international brand business. Although this business occupies a very small share of the group at the present stage (core core brand Lining's products still account for 92% of the group's income), it has always been of great symbolic significance.

With the integrity of corporate culture, private enterprises "the desire and strength to stimulate people's breakthroughs" is the mission of Lining, a sporting goods manufacturer and distributor, and is the vision of the world's leading sporting goods Brand Company, whose core values are "sports, integrity, professionalism, passion and breakthrough trust".

The above are all Lining's corporate culture, and also the few private enterprises that can have a complete set of corporate culture. This is why I have a different look for Lining.

Two years ago, I commentate this company in other columns. At that time, I had pointed out that Lining was one of my favorite and most appreciative private enterprises, but at that time, the valuation of the company had reached 30 times the price earnings ratio. I don't think she would go up again. At that time, the stock price was about 4 yuan. Who knows, I fell violently, because the current price was 6 times higher than the stock price at that time.

Earnings growth is greater than income growth. Lining's share price has risen 12 times over 3 years. Of course, it is related to her performance. If you see the following data, you won't admire it: in 2003, Lining's income was 1 billion 280 million yuan (the same below), an increase of 33%, net profit 94 million, an increase of 40%; in 2004, revenue 1 billion 870 million, 47% growth, net profit 122 million yuan, 30% increase; 2005 income 2 billion 450 million, growth 2 billion 450 million, net profit, growth;

It can be seen that over the past 3 years, Lining's profits have maintained an annual growth of 30% to 50%, especially in the last two years, and the growth is over 50%. It is definitely a high growth company. If everyone is clear, Lining will see that the profit growth of the company is more than that of the income growth. It reflects Lining's efforts to improve business efficiency in addition to the unexpected development.

In the interim results of 2007, the gross profit margin of the company reached 48.7%, the marginal operating profit rate was 14%, and the net profit rate was 10.4%. Furthermore, in the same period of performance, the ratio of operating expenses to total group income decreased from 29.1% in 2006 to 28.6%, including the expenses of advertising and market promotion, as well as the decrease in directors and employees' welfare expenses, which decreased by 0.5 percentage points. It is quite good for a sporting goods operator.

The above half year earnings per share of 19.21 cents (the same below) projections, Lining annual earnings per share can reach 0.4 yuan, Monday (24) share price of 27.9 yuan, converted to 2007 price earnings ratio is about 68 times.

If earnings per share continues to grow by 50% next year, the forecast price earnings ratio in 2008 will still be 46 times.

It is not too expensive to use retail stocks, but Lining's stock price is really valuable from past achievements.

Why is Lining's operation so central A and is it worth absorbing at this stage?

Due to the length of space, I will renew it next time.

As there is something important to do this weekend, we will suspend this column for next Monday (31) and meet you again in January 3, 2008. I wish you all the best for your new year's progress and investment.